In the News:
Talking Numbers: Bank of America’s $6 billion problem
Bank of America reported a loss of 5 cents per share in its first quarter earnings report, as its results were weighed down by $6 billion in litigation expenses.
This charge, hardly the first Bank of America has taken on mortgage-related legal issues, is a perfect example of why investors should stay away from the stock, according to Marc Lichtenfeld of the Oxford Club.
“I would not touch this stock right here,” Lichtenfeld said. “Bank of America has a very complex business model. You’ve got hands and arms and tentacles reaching in every different direction. You also have regulators and lawyers breathing down the companies neck. And they have these – every quarter – one-time litigation expenses.
CNBC: Talking Numbers: Are BlackBerrys about to go extinct forever?
BlackBerry may consider exiting the handsets business.
Early Thursday morning, BlackBerry CEO John Chen was reported to have said in an interview with Reuters, “If I cannot make money on handsets, I will not be in the handset business.” Later on the in the day, he said that quote was taken out of context.
BlackBerry is more than just handsets, however. Under Chen, the company has been broken up into four segments: devices such as its handsets, enterprise services, messaging (the BBM platform) and QNX (BlackBerry’s operating system for embedded systems).
Are BlackBerrys about to go extinct forever?
CNBC: Talking Numbers: Will MasterCard continue to rise with the global emerging middle class?
MasterCard may have disappointed Wall Street with its quarterly earnings but two strategists say the stock is a buy at its current levels.
According to MasterCard’s earnings data released Friday, the company’s revenues grew 12% in the fourth-quarter of 2013 to $2.14 billion from the $1.9 billion in 2012. Its bottom line of $623 million was 3% higher than last year. However, that was a letdown for Wall Street; while adjusted earnings were $0.57 per share, $0.60 was the expected number.
Watch to video to find out why Marc thinks MasterCard is still a buy.
CNBC: Talking Numbers: Why Netflix could break more records
Shares of Netflix rocketed up 17% on Thursday, making it the single best day best since last April. Talking Numbers contributor Richard Ross thinks the stock is headed much, much higher. But The Oxford Club’s Marc Lichtenfeld disagrees and thinks Netflix is overpriced. To find out why Marc thinks Netflix is overpriced, watch the video.
Beware of this ‘Wolf of Wall Street’ stock
On CNBC’s Street Signs’ Talking Numbers segment, Marc Lichtenfeld, Chief Income Strategist at The Oxford Club, says investors should stay away from Steve Madden. Lichtenfeld notes the company has a healthy balance sheet, sales, and earnings but he doesn’t trust it. To see why Marc doesn’t trust Steve Madden, watch the video.
Talking Numbers: 112 year-old company outperformed Tesla in the last 6 months
On CNBC’s Street Signs’ Talking Numbers segment, US Steel is analyzed from the fundamentals and the technicals. Looking at the stock’s fundamentals is Marc Lichtenfled, Chief Income Strategist at The Oxford Club. On the charts is Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson.
Talking Numbers:What’s left to like in Cisco? How about this: Strategist
On CNBC’s Street Signs’ Talking Numbers segment, the stock is analyzed from the fundamentals and the technicals. On the fundamentals is Marc Lichtenfeld, Chief Income Strategist for The Oxford Club, gives the fundamental reasons why he thinks Cisco is a buy.
Talking Numbers: “Take the money and run” on this stock
Is the recent price markup in the stock a reason to bail out now or is the momentum just beginning?
Marc Lichtenfeld appeared on Talking Numbers to give his take:
Talking Numbers: Why airlines are trades, not investments
On CNBC’s Street Signs’ Talking Numbers segment, the fundamentals and the technicals take a look at airlines industry and stock index. Dave Rovelli, Senior Manaing Director of US Equity Trading at Canaccord Genuity, takes a look at the charts. On the fundamentals is Marc Lichtenfeld, Chief Income Officer at The Oxford Club.
Talking Numbers: Why Morgan Stanley isn’t Goldman Sachs
Morgan Stanley reports better-than-expected earnings Friday. So far this year, it’s given investors double the returns of Goldman Sachs. Here’s why the two investment houses are different.
On CNBC’s Street Signs’ Talking Numbers segment, Andrew Busch, publisher of The Busch Report, looks at Morgan Stanley’s technicals. On the fundamentals is Marc Lichtenfeld, Chief Income Strategist at The Oxford Club.
Talking Numbers: Why Take-Two is worth a second look
Grand Theft Auto V is the biggest video game debut of all-time, and also the most expensive. The highly anticipated—and controversial—game cost an unprecedented $260 million to produce, but is setting blockbuster records with sales have topping more than $800 million in its first 24-hours.
And similar to the last GTA release in 2008, the record breaking sales sent shares of the games maker—Take-Two Interactive—soaring. But is this enough reason to buy the stock?
Richard Ross of Auerbach Grayson says he loves the chart, but The Oxford Club’s Marc Licthenfeld wouldn’t touch the company. So who is right?
Talking Numbers: Icahn: “Apple is a no-brainer”
On CNBC’s Closing Bell’s Talking Numbers segment, Richard Ross, Global Technical Strategist at Auerbach Grayson, looks at the charts on Apple to see if Icahn is right. Marc Lichtenfeld, Chief Income Strategist at The Oxford Club, looks at the fundamentals.
Talking Numbers: Will Procter & Gamble’s discount Tide be a wash?
On CNBC’s Closing Bell’s Talking Numbers segment, Todd Gordon, founder of TradingAnalysis.com, looks at the the technicals while Marc Lichtenfeld, Chief Income Strategist at the Oxford Club, looks at the fundamentals of Procter & Gamble.
Marc Lichtenfeld on CNBC: Talking Numbers: Which is a better buy: Family Dollar or Dollar Tree?
On CNBC’s Talking Numbers, Chief Income Strategist Marc Lichtenfeld and Oppenheimer & Co.’s Carter Worth discuss which is a better buy: Family Dollar or Dollar Tree.
Marc Lichtenfeld on CNBC: Talking Numbers: Will UPS deliver you profits?
On CNBC’s Talking Numbers segment, Carter Worth and The Oxford Club’s Marc Lichtenfeld share their thoughts on where UPS is going and if the company will deliver you profits.
Marc Lichtenfeld on CNBC: Talking Numbers: Buy Apple on patent fight win?
On CNBC’s Closing Bell’s Talking Numbers segment, Carter Worth, Chief Market Technician at Oppenheimer, and Marc Lichtenfeld, Associate Investment Director at the Oxford Club, look at the charts and fundamentals of Apple.
Marc Lichtenfeld on CNBC: Talking Numbers: Is it time to bag Coach?
On Closing Bell’s Talking Numbers segment, Richard Ross, Global Technical Strategist at Auerbach Grayson, and Marc Lichtenfeld, Associate Investment Director at the Oxford Club, discuss Coach’s technicals and fundamentals.
Marc Lichtenfeld on CNBC: Talking Numbers: Is Groupon Cheap?
On CNBC’s Closing Bell’s Talking Numbers segment, Carter Worth, Chief Market Technician at Oppenheimer, and Marc Lichtenfeld, Associate Investment Director at the Oxford Club, discuss if Groupon if its stock is worth picking up.
Marc Lichtenfeld on CNBC: Talking Numbers: Is Priceline a Deal?
Marc Lichtenfeld recently appeared on Talking Numbers again, this time to discuss Priceline.
Marc Lichtenfeld on CNBC: Talking Numbers: Buy VZ on NFL Deal?
Marc recently appeared on Talking Numbers to discuss whether Verizon is a buy on its NFL deal.
Marc Lichtenfeld on CNBC: Talking Numbers: Delta or US Airways
Marc made yet another appearance on CNBC’s Talking Numbers, this time discussing which stock is a better buy: Delta or US Airways.
Marc Lichtenfeld on CNBC: Talking Numbers: JC Penny or Macy’s?
Marc recently appeared on CNBC’s Talking Numbers to discuss the battle between JCP and Macy’s to sell Martha Stewart products in certain categories.
Marc Lichtenfeld on CNBC: Netflix vs. Coinstar
Marc appeared on CNBC to give his take on Netflix vs. Coinstar. You’ve gotta love what Wall Street hates.
Marc Lichtenfeld on Fox Business: Would an Increase in Tax Rate Hurt Dividend Stock Investing?
Marc recently appeared on Fox Business where he discussed whether or not an increase in tax rate would hurt dividend stock investing and how to identify quality perpetual dividend raisers:
Marc Lichtenfeld on The Money Answers Show: A Strategy That Works No Matter Who’s in Washington
Marc was recently a guest on The Money Answers Show with Jordan Goodman where they discussed a strategy that works no matter who is in Washington:
Marc Lichtenfeld on Bloomberg’s Talking Stock
Marc appeared on Bloomberg’s Talking Stock podcast to discuss the dollars you pay for dividends, and the lasting value of perpetual dividend raisers:
Is Your Dividend Safe?
Marc Lichtenfeld wrote an article for Smarter Investor at U.S News to answer the question of whether or not your dividends are safe:
In this low-interest-rate environment, dividend investing is very popular. Where else can you find 4 percent yields in quality companies—particularly yields that are growing every year? So it’s no surprise that investors are pouring their money into dividend stocks and chasing yield. But investors should have a clear understanding of what they’re getting themselves into. Picking a stock with a low dividend yield won’t be as destructive to net worth as picking a higher-yielding stock that cuts its dividend.
The Fiscal Cliff That Wasn’t
Marc Lichtenfeld returned to U.S. News and World Report to explain why the looming “fiscal cliff” is high only if you fall off: With stocks at their highest level in four years, some pundits, bears and politicians claim that stocks will certainly plunge if the Bush-era tax cuts are allowed to expire on January 1, 2013. The current tax rate on dividend payments and capital gains is 15 percent. Should the tax cuts expire, dividends and capital gains could be taxed at ordinary income rates. That could be particularly troublesome for retirees who receive a sizeable amount of income from dividends. Those individuals could go from paying 15 percent to over 40 percent depending on their tax bracket. That’s what is causing some pundits to call for the end of the dividend stock bull market. Continue reading on U.S. News and World Report.
Marc Lichtenfeld – On The Money Radio: All About Dividends
Marc Lichtenfeld recently appeared on On The Money Radio with Steve Pomeranz to discuss how to invest in dividends long-term and generate consistent returns:
An investment idea neither party can mess up
Marc Lichtenfeld returned to U.S. News and World Report to explain why your broker is a terrible source of financial advice:
As an investor, you should constantly be striving to learn as much as you can about market history, how markets work, different types of analysis, etc.
For example, did you know that since 1937, the market has gone up 91% of the time over 10-year periods? That puts me at ease considering the upcoming election and the fact that I have absolutely no faith that either presidential candidate or Congress will do much to improve the economy.
It may be a tough slog going forward, but that’s not much different than other difficult periods in history. The 1970s was no cakewalk. Vietnam, Watergate, gas lines, double-digit inflation, yet, including dividends, investors made money in every 10-year period involving the 1970s (i.e. 1967-1976, 1973-1982, etc.)
Why You Should Fire Your Broker
On U.S. News and World Report, Marc Lichtenfeld recently explained why worrying is unproductive, and what to do instead:
A few of my friends are furious at me.
They’re financial advisors.
They’re good people and take care of their clients.
So they wonder, in angry emails to me, why I would recommend that investors fire their advisors.
Let me state up front that if your advisor is doing a better job than you can, or if having someone else manage your money helps you sleep better at night, then by all means, stick with that person. They’re worth every dollar you pay them.
But you likely can do better and save money at the same time.
A better way to tell if a stock dividend is safe
Here’s Marc Lichtenfeld on MarketWatch, explaining why sustainable income is more valuable than high yield:
After all, yield is important. If you’re going to achieve your financial goals by investing in dividend paying stocks, you do need a decent payout.
But even more important than the amount you’re getting paid is the likelihood that you’re going to get paid at all. To determine if the dividend is sustainable, look at the payout ratio.
The payout ratio is the percentage of earnings that is paid out in dividends. For example, if a company has $100 million in earnings and pays out $50 million in dividends, the payout ratio is 50%. It pays out 50% of its earnings in dividends. The payout ratio formula is: Dividends paid/net income.
Why Investors Shouldn’t Worry About the Next 10 Years
On U.S. News and World Report, Marc Lichtenfeld recently explained why worrying is unproductive, and what to do instead:
There are a lot of things for investors to be worried about these days.
What if Obama is re-elected? What if he isn’t?
What if buy and hold is dead? What if there are more flash crashes?
What if the Cubs go on a miraculous 30 game win streak, take the pennant and win the World Series, which will ultimately prove that the Mayans were correct and this is the end of times?
If you’re a trader, these scenarios can make a difference in your returns (except the Cubs thing—there’s no chance of that happening). But if you’re a long-term investor, all if it, including the elections, is nothing but a bunch of noise.
If your investment horizon is ten years or more, you have little to worry about. Since 1937, the market has been up 67 out of 74 ten-year periods. The only ten-year periods in which the market did not produce positive returns were the ten years ending 1937, 1938, 1939, 1940, 2008 and 2009.
The road to wealth in the stock market leads to companies that regularly pay — and increase — their dividends, according to Wellington financial analyst Marc Lichtenfeld.
“Invest in great companies that raise their dividends every year and don’t do anything else,” advises Lichtenfeld. “In several years you will have many times more money than if you try to trade the market or put it in an actively traded mutual fund.” Read Full Article >>
3 Tips to Improve Returns With Dividend Stocks
Wall Street Shuffle
The Wall Street Shuffle is much more than just another talk show…fast-paced, topical, irreverent and smart analysis of the news and action of the day. Sure we discuss equities, investment and strategies. And, yes, we have only the absolute best national guests every day to bring perspective to complex issues.
Click the play icon below to hear an interview with Marc Lichtenfeld and MoneyLife host Chuck Jaffe.
MoneyLife host Chuck Jaffe is senior columnist for MarketWatch. His three weekly columns are syndicated nationally, and his “Your Funds” column is the most widely read feature on mutual fund investing in America. In 2009, Chuck was named to MutualFundWire’s list of the 40 Most Influential People in Fund Distribution, the only journalist ever to make the list.
When I first got started in the investment business 27 years ago – as a novice stockbroker – I had an awkward conversation with a client.
She was an elderly, income-oriented investor with a substantial sum tied up in an oil stock with a fairly low yield. I suggested that she could do a lot better than the 2.5% dividend she was earning.
“Son,” she replied – I had already come to recognize that it was likely to be a teachable moment, and an embarrassing one, when a more-experienced investor called me “son” – “that stock is paying 2.5% based on what it is selling for now. But for me, the annual dividend is more than my entire original investment. ” Read Full Article >>
DELRAY BEACH, Fla. (MarketWatch) — Spring cleaning doesn’t go over well in my house. Like most kids, mine are hesitant to throw away any of their toys — even the ones they haven’t played with since the Bush Administration. And, while I may not quite be a candidate for the television show “Hoarders,” I still have a few T-shirts from college, which was a couple of decades ago. So, other than my wife, we Lichtenfelds generally don’t like to get rid of stuff.
But a stock portfolio is different. While that old Beastie Boys ticket stub from 1990 may have sentimental value, getting emotionally attached to your stocks can be dangerous to your financial health. At least once a year, you should go through your stocks and assess whether they deserve to remain in your portfolio. Read Full Article >>
At a time when the economy is weak, earnings growth is slowing and central banks all over the world are printing money, demand for so-called safe havens is outpacing supply. Simply put, there are not a lot of good, low risk places to park money anymore, and that especially applies to U.S. treasuries.
“I don’t think Treasuries are the place to be at all if you’re trying to protect your buying power over the long term,” says Marc Lichtenfeld, Associate Investment Director at the Oxford Club and author of the book, Get Rich With Dividends. “They are safe in that you’ll very likely get your money back, but they’re not safe at all in terms of buying power,” he adds in the attached video. Read Full Article >>